Crown Castle Rejects Co-Founder'sboard, fight, co, founder, capital

Crown Castle, a wireless tower owner with a market value of $43 billion, has rejected co-founder Ted Miller's bid to elect four directors to the company's board. Prominent proxy advisory firm Institutional Shareholder Services (ISS) urged investors to back Crown Castle's director nominees instead, citing recent changes made by the company in response to activist investor Elliott Investment Management's demands.

Why this matters: The outcome of this board election has significant implications for the future direction of Crown Castle and the wireless tower industry as a whole. It also highlights the growing influence of activist investors in shaping corporate strategy and governance.

Miller, who served as Crown Castle's CEO between 1996 and 2002, wants the company to sell its fiber business. His investment fund, Boots Capital, has nominated himself, his son-in-law Tripp Rice, Charles Green, and David Wheeler to join the board to facilitate the sale and upgrade the company's tower assets. Shareholders will elect four directors on May 22 to serve on the 13-member board.

However, ISS stated in its report that "there is no case for incremental change at this juncture" after Crown Castle took quick action to address Elliott's concerns. The company has appointed a new CEO, is reviewing the future of its fiber business, and has added new directors, including Elliott portfolio manager Jason Genrich.

"In light of the improvements to the board composition and governance, the new CEO, and the strategic review initiated as a result of Elliott's campaigns in 2020 and 2023, incremental changes at the board level do not appear necessary,"the ISS report said. The firm noted that Miller's offer to assist with changes is not necessary, as the company is already implementing improvements to itsboard, fight, capital.

ISS's recommendations guide many investors on how to decide on key issues, including board composition and mergers. Representatives for Crown Castle did not have an immediate comment, and a representative for Boots Capital did not immediately respond to a request for comment.

The rejection of Miller's bid marks a significant victory for Crown Castle in its ongoing battle with activist investors. As the company moves forward with its strategic review and leadership changes, it remains to be seen how the board election on May 22 will impact Crown Castle's future direction and the fate of its fiber business.